While other European markets did not share Paris's recent winning streak, they nonetheless posted significant gains at Wednesday's close. The DAX 40 in Frankfurt climbed .34%, London's FTSE 100 added 1.26%, and Milan rose by 1.46%.
In the United States, New York indices followed suit, with the Dow Jones, Nasdaq Composite, and S&P 500 showing gains ranging between 0.60% and 0.85%.

Conflicting narratives from belligerents

The market rally is primarily driven by hopes that the conflict in the Middle East might de-escalate or even reach a ceasefire. However, clarity remains elusive amid a flurry of contradictory statements. As airstrikes continue on both sides, Tehran maintains it has had no discussions with Washington regarding an end to the war. Conversely, AFP reports that a 15-point plan, detailing U.S. proposals to Iran, was transmitted to the Islamic Republic via Pakistani negotiators.

In a separate development, Iran has reportedly loosened its grip on the Strait of Hormuz, informing the International Maritime Organization that all "non-hostile" vessels are free to transit the passage. The definition of "non-hostile" remains to be seen: does it refer to ships from the Islamic Republic's allies or simply non-military vessels?

Christopher Dembik, Investment Strategy Advisor at Pictet AM, urged caution: "One must be very wary of this market rebound, which is tied to a hope for peace that could vanish as quickly as it appeared. Technical factors, particularly short covering, should not be overlooked as drivers of this rise. Consequently, prudence remains the watchword."

Oil prices resumed their upward trajectory following a brief dip, with New York-traded WTI gaining 1.32% to 90.05 dollars, while London's Brent appreciated by 1.90% to 101.36 dollars.

On the currency market, the euro retreated against the greenback (-0.38%), trading at 1.1570 dollars.

German Ifo index stands as sole major statistic

On the macroeconomic front, investors had few data points to monitor, notably in Germany. The Ifo Business Climate Index for March fell from 88.4 to 86.4 points, though analysts had feared a sharper decline. Nevertheless, at 86.4 points, the indicator sits at its lowest level since February 2025. In its commentary, the Ifo noted that "the war in Iran is, for now, putting an end to hopes of recovery."

Corporate news

In France, Nanobitix shares (+4.53%) were buoyed by rumors of interest from Johnson & Johnson, according to reports from La Lettre, despite a denial issued by the biotech firm in the afternoon. The two companies have been linked since 2023 by a global licensing, co-development, and commercialization agreement. This deal was further amended in March 2025 to help the French company reduce its financing requirements.

Within the CAC 40, defensive stocks were logically sidelined in a rising market, as seen with Danone (-0.85%).

Elsewhere in Europe, Reckitt shed 0.55% in London, weighed down by a note from Deutsche Bank, which lowered its earnings forecasts for the consumer goods group.

Asos surged 15.57% in London following a trading update showing that the British online fashion retailer continues to prioritize profitability over growth, a strategy that remains well-received by investors.

Also in London, financial services group Prudential rose 2.35% after UBS reaffirmed its "buy" rating and raised its price target from 1,400 to 1,470 pence.

In Frankfurt, BASF also found support (+2.27%) from analyst sentiment. Citigroup upwardly revised its 2026 EBITDA forecast for the German chemical giant. The U.S. bank maintains a "buy" rating with a price target of 55 euros, up from 54 euros.

In Madrid, Grifols, the specialist in therapeutic products and medical devices, gained only 0.86% after jumping more than 7% at the open. The group announced its intention to launch an IPO for its U.S. biopharmaceutical division.